diff --git a/crates/transaction-pool/src/pool/best.rs b/crates/transaction-pool/src/pool/best.rs
index 36a14edaa2..068ef98995 100644
--- a/crates/transaction-pool/src/pool/best.rs
+++ b/crates/transaction-pool/src/pool/best.rs
@@ -128,6 +128,15 @@ impl<T: TransactionOrdering> BestTransactions<T> {
         }
     }
 
+    /// Removes the currently best independent transaction from the independent set and the total
+    /// set.
+    fn pop_best(&mut self) -> Option<PendingTransaction<T>> {
+        self.independent.pop_last().inspect(|best| {
+            let removed = self.all.remove(best.transaction.id());
+            debug_assert!(removed.is_some(), "must be present in both sets");
+        })
+    }
+
     /// Checks for new transactions that have come into the `PendingPool` after this iterator was
     /// created and inserts them
     fn add_new_transactions(&mut self) {
@@ -167,7 +176,7 @@ impl<T: TransactionOrdering> Iterator for BestTransactions<T> {
         loop {
             self.add_new_transactions();
             // Remove the next independent tx with the highest priority
-            let best = self.independent.pop_last()?;
+            let best = self.pop_best()?;
             let sender_id = best.transaction.sender_id();
 
             // skip transactions for which sender was marked as invalid
diff --git a/crates/transaction-pool/src/pool/pending.rs b/crates/transaction-pool/src/pool/pending.rs
index ff5269014c..c9cfd85e28 100644
--- a/crates/transaction-pool/src/pool/pending.rs
+++ b/crates/transaction-pool/src/pool/pending.rs
@@ -815,4 +815,47 @@ mod tests {
             pending.into_iter().map(|tx| (tx.sender(), tx.nonce())).collect::<HashSet<_>>();
         assert_eq!(pending, expected_pending);
     }
+
+    // <https://github.com/paradigmxyz/reth/issues/12340>
+    #[test]
+    fn test_eligible_updates_promoted() {
+        let mut pool = PendingPool::new(MockOrdering::default());
+        let mut f = MockTransactionFactory::default();
+
+        let num_senders = 10;
+
+        let first_txs: Vec<_> = (0..num_senders) //
+            .map(|_| MockTransaction::eip1559())
+            .collect();
+        let second_txs: Vec<_> =
+            first_txs.iter().map(|tx| tx.clone().rng_hash().inc_nonce()).collect();
+
+        for tx in first_txs {
+            let valid_tx = f.validated(tx);
+            pool.add_transaction(Arc::new(valid_tx), 0);
+        }
+
+        let mut best = pool.best();
+
+        for _ in 0..num_senders {
+            if let Some(tx) = best.next() {
+                assert_eq!(tx.nonce(), 0);
+            } else {
+                panic!("cannot read one of first_txs");
+            }
+        }
+
+        for tx in second_txs {
+            let valid_tx = f.validated(tx);
+            pool.add_transaction(Arc::new(valid_tx), 0);
+        }
+
+        for _ in 0..num_senders {
+            if let Some(tx) = best.next() {
+                assert_eq!(tx.nonce(), 1);
+            } else {
+                panic!("cannot read one of second_txs");
+            }
+        }
+    }
 }